© 2006 Nokia

Nokia Siemens NetworksSimon Beresford-WylieChristoph CaselitzMika Vehviläinen

© 2006 Nokia

Consolidate

Leverage

Transform

© 2006 Nokia

Nokia Siemens Networks –Built to execute

COO PerspectiveMika

© 2006 Nokia

Unique structure and widest coverage to drive convergence of service and networks

• Best of class portfolio

• Strong position to address convergence of services and networks

• Operational and business structure to reflect the converging and horizontalization of networks

• Required scale to invest in new innovation

Transport and IP networking

Service Core and Applications

Services•Installation, commissioning, maintenance•Consultation •Integration•Managed services•Hosting

Radio Access•GSM/EDGE•WCDMA/HSDPA •TD-SCDMA•WiMAX•LTE

•NG Voice & Multimedia (IMS, Rel4)

•Media Gateways•VoIP/Softswitching•Mobile Internet

Connection•Charging & BSS•Applications

Operating Support Systems•Network management•Service management

3rd partyportfolio of

complementing applications and

equipment

•WDM •Next Gen SDH•Microwave

Broadband Access•DSL•PON•Ethernet Access/

Metro Ethernet

© 2006 Nokia

Operational mode built to execute and drive maximum synergies

• Unified, effective structures in all BU's

• All common functions centralized to gain maximum efficiencies

• Centralized hardware and software platform development to drive maximum leverage of common designs

• One unified and common sourcing, manufacturing and logistics forall products and solutions

• Globally balanced R&D and manufacturing footprint

© 2006 Nokia

Industry best for creating end-to-end experiences

• Deep understanding of all network technologies for converging services

• Widest service creation and application portfolio in the industry

• Strong links and cooperation with leading device vendor Nokia -driving together understanding of end-user needs and new services

7 © 2006 Nokia

Nokia Siemens Networks –Built to execute

CMO PerspectiveChristoph

© 2006 Nokia

AgendaAgenda

•Customer baseand footprint

•Regional set-upand marketpositions

•Customer drivenoperational mode

© 2006 Nokia

Nokia Networks customer base and execution footprint early 2006

Nokia Networks - customer base footprint early 2006

© 2006 Nokia

Nokia Siemens NetworksStrong execution footprint in 150 countries

Customers: ~600*

Connections served: ~1Bn*Countries: ~150*Service professionals: ~20,000*

Nokia Siemens Networks customer base and execution footprint early 2007

Supplier to top 100 operators: ~75%*

* Based on the combined customer base and/or operations of Nokia and Siemens

© 2006 Nokia

West & South Europe€ 22Bn, #2

North East€ 7Bn, #1

Middle East & Africa€ 8Bn, #1 APAC

€ 19Bn, #2

China€ 9Bn, #3

Latin America€ 7Bn, #1

North America€ 25Bn*, #6**

*Communications infra market size 2005 € Bn**Nokia Siemens Networks Market position based on

2005 combined market positions of Nokia and Siemens (Nokia estimate)

Regional focus

© 2006 Nokia

Strategic Alignment

Execution

Customer Solution

Customer focus – including Nokia level engagementCustomer focus – including Nokia level engagement

Nokia / Nokia Siemens Networks

Customer

Services Teams

Customer Business Teams,

Customer Teams

E2E Roadmap,Scope

Nokia & Nokia Siemens Networks Executive Boardand Business Units

Managed services, Consulting, Care, NW Implementation

Business and technical Management

Operations

Owners and Group Executive Management

© 2006 Nokia

Competence deployed in Customer Teams and Regions Close alignment with COOCompetence deployed in Customer Teams and Regions Close alignment with COO

CMO

Service Regions

Regions

Dedicated Customer Teams

Solution Sales, Marketing

Customer Business Teams Dedicated Customer Teams

Services Business Unit

COO

Customers

COO Business Units

© 2006 Nokia

Conclusions Conclusions

•Industrybenchmarkcustomer base and execution footprint

•Regional focus

•Customer drivenmode – includingNokia level

•Scale

© 2006 Nokia

Nokia Siemens Networks –Integration project progressSimon

© 2006 Nokia

Integration planning progressing

Launch Integration PlanningPost Regulatory Approval

Start of Operations*1 2 3 4

Anti-Trust clearance13.11.2006

Announ-cement

19.6Day 1

Jan 2007

Integration planningkick-off

19.7

Measuresdefined

30.9.

Implementation plans defined

Nokia CapitalMarket Days

*Transaction is subject to customary closing conditions and the agreement of a number of implementation steps.

© 2006 Nokia

Integration planning project

• Integration planning project team worked since late July

• Some 200 people fulltime involved in planning work

• Nine functional work-streams coordinated by centralized integration management office

• CXOs deeply involved throughout integration planning process

• Parent carve-outs from have increased complexity

• Weekly steering meetings by executive team

• Results in 4 months • Foundation for world-class company established

• Synergy plans built

• Day 1 readiness preparation under way

© 2006 Nokia

Key focus our integration planning

1.5 BEUR estimated annual cost synergies by 2010 identifiedFast ramp-up of cost savings

Rigorous integration planning project with clear milestone management and achievementsIntegration planning work done in 9 work streams covering whole organization guided by a centralized team

Build world class company

Organization defined; 1st, 2nd and 3rd level nominationsCultural direction underway Global mode of operation mostly decided

Achieve merger synergies

Ensure readiness on day one

© 2006 Nokia

Our methodology of monitoring progress with synergies

Nokia CapitalMarket Days

DI 1 First idea Potential evaluated

Implemen-tation plan in place

DI 2 DI 3 DI 4 DI 5

Focus during integration phase Starting with operation

Measureimplemented

Financial impactrealized

•Specific individual examples/idea described in the tool

•Potential quantified

•Measure submitted for assessment

•Objective defined:

•Derived from benchmarking

•Adopted frombusiness plan

•Derived from baseline/targets

•Detailed evaluationof the potential

•First draft of Implementation plan with mile-stones and due dates entered

•Consultation with employees representatives

•Implementationexecuted

•Level and start of impact on profit revised

•Impact on profit can be traced

© 2006 Nokia

Cost Synergies Identified

2007E 2008E 2009E 2010E

• Identified estimated cost synergies to reach 1.5 BEUR annually by 2010

• Substantial portion of cost synergies expected within first 2 years

• Double-digit operating margin by end of first year (before restructuring charges)

© 2006 Nokia

Synergy target unchanged

COGS Savings• Procurement savings

• Improved Services utilization rates

• Streamlined processes

R&D Savings• Harmonization of product platforms

• Optimized R&D structure

• Rationalizing next generation R&D

G&A Savings• Finance & Control

• IT support systems

• Headquarter functions

S&M Savings• Overlapping wireless customer & geographic coverage

• Sales force efficiencies

~33 % ~40 %

~20 % ~7 %

Category split between estimated annual cost synergies of €1.5 Bn by 2010

© 2006 Nokia

Q & A